What is Loss Aversion?
Loss Aversion — The tendency to feel losses more strongly than equivalent gains, which can make investors hold losers too long.
In simple terms
Loss aversion is why people avoid booking a small loss.
Why Loss Aversion matters when you invest
Understanding loss aversion helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Loss Aversion — frequently asked questions
What is Loss Aversion?
The tendency to feel losses more strongly than equivalent gains, which can make investors hold losers too long.
What does Loss Aversion mean in the stock market?
The tendency to feel losses more strongly than equivalent gains, which can make investors hold losers too long. Loss aversion is why people avoid booking a small loss.
Can you give an example of Loss Aversion?
Loss aversion is why people avoid booking a small loss.
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